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Lateral Capital®

Opportunity Fund, LP

Fund Overview

For Accredited Investors

January 2024

Headquartered in Sarasota, Florida, Lateral Capital is a Micro Venture Capital Limited Partnership for accredited investors. Over the last nine years, our Limited Partnerships have invested in 87 companies across 21 states. As of January 31, 2024, projected gross returns for these funds are about 3.4X invested capital (MOIC), ahead of the 2.2X to 2.6X “industry average” for investments in Early Stage Companies.

VintageNumber of Investments
To Date
Amount Invested To Date ($ Million)
Amount Returned ($ Million)
Actual As Of Dec. 31, 2023
Unrealized Projected1
Projected Total1
Fair Value
of Active
($ Million)
Gross TVPI
Projected Returns (MOIC)1,3

1. Definition of Projected Returns – Gross Returns do not include Management Fees, the cost of operating the Funds or Carried Interest. Net Returns are estimated based on projected Management Fees and costs. Projections are based on a variety of inputs believed to be reliable but are strictly not guaranteed. Columns may not add due to rounding.

2. Definition of TVPI – TVPI or Total Value to Paid-In Capital is the ratio of the current value of remaining investments within a fund, plus the total value of all distributions to date, relative to the total amount of capital paid into the fund to date, with any recallable distributions included in the numerator of this ratio and any reinvested capital (resulting from recallable distributions) incuces in the denominator

3. Projection of Gross/Net Returns – The GP’s projection of what the Funds will return when all investments are realized. This is based on actuals to date, projected outcomes, and projections of expenses to the end of Fund life.

4. Initial LCOF Investments – We have already made the first three investments in LCOF:
Commonwealth Fusion Systems- Building a device to generate electric power using nuclear fusion.
Earthgrid - Uses plasma technology to bore tunnels, even through solid rock, for sale/lesse to electric utilities.
Imperium Technologies - Wireless steam traps to reduce industrial energy use in 20MM U.S. locations.

Overview Of Offering – Lateral Capital (LC) is offering interests in its fourth syndicated Limited Partnership, the Lateral Capital Opportunity Fund, LP (LCOF). LCOF will likely invest primarily in companies where Lateral Capital Funds have positions. We believe these companies are somewhat de-risked and that they have potential for a profitable exit in the next 5 to 7 years. As examples, we would consider additional investment in the companies listed below:

Boom Supersonic

Supersonic low CO2 passenger aircraft

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Continuous purification of biopharmaceuticals

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Chromatic 3D Materials

3D printing of industrial seals and gaskets

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AI-based diagnosis of skin cancer

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Eko Devices

Digital stethoscopes for heart monitoring

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Gila Therapeutics

Oral GLP-1 drug for weight reduction

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Guardian Medical

Sterile packaging for orthopedic implantables

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Inversa Leathers

High fashion leathers from invasive fish and reptiles

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Integrated warehouse management software

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Eco laminates from renewable grasses

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Next generation drone-based air freighters

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Industrial magnet manufacturing with no rare earth materials

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Reprise Biomedical

Resorbable patches for wound closure

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Wearable fluid monitor for hydrocephalus

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StabiLux Biosciences

Intracellular dyes for medical research

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Watershed Therapeutics

Extended protection against UTIs

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Background On Lateral Capital Limited Partnership– Since 2015, we have invested in Early Stage Companies led by paranoid optimists of impeccable character. We look to invest in companies with:
  • Completed products or services, a compelling user benefit and ideally one customer.
  • Proprietary technology with issued or filed patents – to protect the company while it grows.
  • Logical strategic buyers who will need to buy the company – in the next 5-7 years.
  • Business models which lead to cashflow breakeven – while the company waits for a buyer.
  • Contribute to the Greater Good – businesses which have the potential to benefit society.

Within these criteria, Lateral Capital has made investments in a wide range of categories – from health care to industrial products; from specialty B2B software to a therapy for Alzheimer’s. We do not invest in distribution-driven categories like food and beverage or in businesses which are location-dependent. Similarly, we do not invest in companies engaged in online gambling, computer games or marijuana.

Most of our investments have been made alongside Angel groups which “source” most of our investments. These include Band of Angels (Palo Alto), Seraph Group (Atlanta), Golden Seeds (New York), Tamiami Angels (Naples), Central Texas Angels (Austin) and TCA Venture Group (Southern California). We have also invested in companies which have presented at SXSW and Angel Capital Association events.

Lateral Capital is run by long-time Procter & Gamble executive and former Pillsbury CEO, John Lilly. He is joined by Tim Kost, as Managing Director and CFO, and by experienced Broker/Dealer assistant Michelle Ballentine. Limited Partners include CEOs, CFOs, investment bankers and others across the U.S.

Current Situation – Rapid increases in interest rates have greatly reduced availability of private capital to all Venture-backed companies. Investments in Early Stage Companies declined for six straight quarters through the end of 2023. This situation makes for a great opportunity to invest in Early Stage Companies which have short-term capital needs – but excellent longer-term potential.

Lateral Capital Opportunity Fund Offering– The Lateral Capital Opportunity Fund will invest up to $10MM in 15-40 Early Stage Companies, depending on the amount of capital we raise. Many of these companies will be add-on investments of the 50+ active companies of our prior funds. These are businesses we already know something about, in which we have increasing confidence and which need more capital to get to an exit. On a select basis, we may also invest in other Early Stage opportunities, particularly in companies which operate in spaces adjacent to our existing investments.

To kick off the Fund, an affiliate of the General Partner will contribute investments in three companies where investments have recently been made. These will be contributed to the Opportunity Fund at cost, plus reimbursable transaction expenses of no more than $5,000 per company:

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Commonwealth Fusion Systems – Building a device to generate electric power using nuclear fusion. Their first power unit is already under construction in Devens, MA.
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Earthgrid – Uses plasma technology to bore tunnels, even through solid rock. Earthgrid will build tunnels for sale or lease to utilities, primarily for electricity transmission.
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Imperium Technologies – Imperium Technologies – Produces wireless controlled steam traps designed to reduce energy costs in industrial facilities. There are about 20MM steam trap devices in the U.S.

Details Of The Offer – Here are the key elements of how the Fund will operate:

  • Investment minimum of $100,000, to be called in three tranches over three years, with 40% due at the first close of $2MM. We have about $1MM in immediate opportunities across 7-10 companies.
  • A seven year fund life (three years invest/four years monitoring), with extensions by vote of the Limited Partners. This reflects our plan to invest where there are rapid sale opportunities.
  • The General Partner will contribute 10% of the Fund, with a minimum of $550,000. Fees will be “industry standard” (2% Management Fee plus 20% Carried Interest) and reasonable expenses.

Additional Information Available– We have prepared several introductory presentations which are downloadable as .pdfs by clicking the boxes below. These are fairly standard for investments in Venture Capital funds, but they are the official documents which govern the Fund. If you have questions, we encourage you to discuss them with us or your Legal/Financial Advisor.

Third Party Verification Process– To comply with SEC regulations, all Prospective Investors will need to provide third party verification that they are accredited. The general requirements are that an investor have $200,000 in annual income ($300,000 for those filing jointly) with reasonable expectations to continue at this level. Alternatively, investors could be deemed accredited if they have $1,000,000 in assets beyond their principal residence. Before we can accept your investment, we will need your lawyer, Financial Advisor or CPA to confirm your accredited investor status in writing. This is surprisingly simple. In the signature packet below, there is a DocuSign form for you to fill in and sign. When it is returned to us, we will send it on to the Advisor you name to be completed. Importantly, we do not need any data from you like tax returns, etc. We just need the signature of someone who has knowledge of your financial condition and can confirm that with us on a “blind” basis.

Signing Up With The Fund– The process for joining the Lateral Capital Opportunity Fund is straightforward. Open the Signature Packet by clicking the box below and fill them in. When the Third Party Accreditation is received back from your Advisor, we will countersign the documents and return them to you. At that time, you will also receive a Capital Call for the first 40% of your commitment.

Signature Packet For Lateral Capital Opportunity Fund, L.P.
  1. 1: Subscription Agreement and Investor Questionnaire
  2. 2: Signature Page for Limited Partnership Agreement
  3. 3: W-9 Form
  4. 4: Signature Page to Third Party Accredited Verification

Next Steps – We are happy to set up a Zoom to talk about any aspect of our plans for the Lateral Capital Opportunity Fund. Please contact Michelle Ballentine to set up a time:

Lateral Capital Opportunity Fund, LP ,
Attention: Michelle Ballentine
1500 State Street, Suite 201, Sarasota, FL 34236

The presentation preceding these pages and any related oral or written discussion (variously described as the “Materials,” the “Information” or this “Presentation”) is governed by the limitations detailed below.

Introduction – This Presentation was produced by Lateral Capital Management, LLC (LCM) on behalf of Lateral Capital Opportunity Fund General Partner, LP (LCOFGP) for the purposes of engaging investors in considering an investment in Lateral Capital VII, LP (LCOF). While LCM is the author of this presentation, the Disclaimers described below apply to all Lateral Capital entities, including LCM, Lateral Capital Advisors, LLC and individual Lateral Capital funds.

General Disclaimer – By acceptance hereof, you agree that (i) the information contained herein may not be used, reproduced or distributed to others, in whole or in part, for any other purpose without the prior written consent of LCM; (ii) you will keep confidential all information contained herein not already in the public domain; (iii) the information contains highly confidential and proprietary ‘trade secrets’ (some of which may constitute material non-pubvlic information); and (iv) you will only use the information contained in this Presentation for informational purposes and will not trade in securities on the basis of any such information. The presentation and other ancillary documents include various examples or subsets of Lateral Capital’s existing and past investments. Such information includes, among other things, portfolio company valuations and fund performance, which includes Gross MoM and Gross IRR, all estimated as of specific dates as indicated. The portfolio companies highlighted have been chosen generally for the purposes of illustration and not based on performance. Investments in other companies may have materially different results. There is no assurance that any portfolio companies discussed herein will remain in the relevant fund at the time you receive this information.

Important Securities Law Information – This Presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities and may not be used or relied upon in evaluating the merit of investing in LCOF. A confidential information memorandum (including any supplements thereto, the “CIM”) and definitive documentation relating to LCOF or our investments therein, including constitutive documents and subscription documents (collectively, the “LCOF Documents”), will be made available and must be received by you prior to subscribing for an interest in LCOF. An offer or solicitation for LCOF will be made only through the CIM, which will contain additional information about the investment objectives, terms and conditions of an investment in LCOF and risk disclosures that will be important to any investment decision regarding LCOF. The information set forth herein is not a part of or supplemental to the CIM, the LCOF Documents or any documents ancillary thereto. The information set forth herein will be superseded in its entirety by the CIM and the LCOF Documents. In the case of any discrepancy between the information contained herein and the CIM or the LCOF Documents, the CIM and the LCOF Documents will control.

Representations and Warranty – No representation or warranty is given in respect of the information contained herein, and neither the delivery of this document nor the placing of any interests in LCOF will under any circumstances create any implication that LCOF has updated the information contained herein. Information throughout the Presentation provided by sources other than LCOF has not been independently verified. Differences between past performance and actual results may be material and adverse. Past performance is not necessarily indicative of future results. Unless otherwise stated, any reference to MoM and IRR refers to Gross MoM and Gross IRR. Gross MoM is calculated on a gross basis and does not reflect the effect of fund expenses, taxes borne, or to be borne, by investors in LCOF, and would be lower if it did. These materials may include comparisons to an index (e.g., S&P 500, Russell 2000 and MSCI World Index or other benchmarks for publicly-held securities) against the performance of LCOF. The performance of these indexes is provided for reference only. LCOF differs from an index in that, among other things, it is actively invested and is subject to various fees and other expenses. Investors cannot invest directly in the index.

Risk of Loss From Investments– Any projections, estimates, forecasts, targets, prospects, returns and/or opinions contained in these materials involve elements of subjective judgment and analysis and are based upon the best judgment of LCM as of the date of these materials. LCM does not take responsibility for such projections, estimates, forecasts, targets, prospects, returns and/or opinions. Any valuations, forecasts, targets, opinions or projections expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. No representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on, any valuations, forecasts, targets, estimates or opinions described in these materials.

Forward-Looking Statements – All statements in this presentation (and oral statements made regarding the subjects of this presentation) other than historical facts are forward- looking statements, which rely on a number of estimates, projections and assumptions concerning future events. Such statements are also subject to a number of uncertainties and factors outside LCM’s control. Such factors include, but are not limited to, uncertainty regarding and changes in global economic or market conditions, including those affecting the industries of Lateral Capital portfolio companies, and changes in U.S. or foreign government policies, laws, regulations and practices. Opinions expressed are current opinions as of the date of this presentation. Should LCOF’s estimates, projections and assumptions or these other uncertainties and factors materialize in ways that LCM did not expect, actual results could differ materially from the forward-looking statements in this presentation, including the possibility that investors may lose a material portion of the amounts invested. While LCM believes the assumptions underlying these forwardlooking statements are reasonable under current circumstances, investors should bear in mind that such assumptions are inherently uncertain, subjective and that past or projected performance is not necessarily indicative of future results. No representation or warranty, express or implied, is made as to the accuracy or completeness of the information in this presentation, and nothing shall be relied upon as a promise or representation as to the performance of any investment. Investors are cautioned not to place undue reliance on such forward-looking statements and should rely on their own assessment of an investment.

Information Regarding Determination of Targeted Returns – LCOF believes the targeted returns for certain investments included in these materials are reasonable based on a combination of factors, including the performance of previous Early Stage investments, Lateral Capital’s historical track record and LCM’s assessment of prevailing market conditions and investment opportunities. However, LCOF’s targeted returns for certain investments are not a predication or projection of actual investment results and there can be no assurance that the targeted returns will be achieved. Investors should also be aware that relatively high targeted returns, such as those included in these materials, entail concomitantly greater risks of adverse and volatile investment results. The targeted return of any individual investment can be lower or higher, depending on the nature of any individual investment. LCM’s evaluation of a proposed investment is based, in part, on LCM’s internal analysis and evaluation of the investment and on numerous investment-specific assumptions that may not be consistent with future market conditions and that may significantly affect actual investment results. No representation or warranty is made as to the reasonableness of the assumptions made or that all assumptions used in calculating the targeted returns have been stated or fully considered. LCOF’s ability to achieve investment results consistent with its targeted returns depends significantly on a number of factors in addition to the accuracy of such assumptions. Such factors include, among other things, LCM’s ability to execute its investment strategy successfully and an assumption that investments will be exited in less than ten years after investment, which cannot be assured. Investments may be held substantially shorter or longer than LCM’s exit assumption, which can significantly affect the investment’s performance. The past performance of Lateral Capital Funds is not necessarily indicative of future performance and there can be no assurance that LCOFI will succeed in achieving the targeted returns discussed herein. Such targets may be adjusted in light of available opportunities or changing market conditions.

This Presentation is Not Financial or Investment Advice – The Materials do not constitute investment advice, recommendations or solicitations to purchase or sell securities mentioned herein, if any. LCM is not, and does not provide services as an investment advisor, investment analyst, broker, broker-dealer, market-maker, investment banker or underwriter. Information in this presentation, including forecast financial information, if any, is for information purposes only and should not be considered as advice or a recommendation with respect to holding, purchasing or selling securities or other financial products or instruments and does not take into account the reader’s particular investment objectives, financial situation or needs. Before acting on any information, readers should consider the appropriateness of the information and should seek independent financial advice. The contents hereof should not be construed as investment, legal, tax or other advice and you should consult your own advisers as to legal, business, tax and other related matters concerning an investment in LCOF. Unless otherwise noted, the information contained herein has been compiled as of January 2024 and there is no obligation to update the information provided herein.

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